The Missing Link for the US Economy Just Arrived
Source: BCA Research
Economic Growth has been lackluster since the financial crisis, in part because household formations remained mired at low levels. This was a "Missing Link" to a more robust expansion.
Housing Starts and the Unemployment Rate are correlated with Household Formation.
Household Formations spiked from the abnormally weak levels recently. As this continues, it indicates unemployment remains in a downtrend, and may preview an improvement in housing starts. This would be good economic news.
This publication has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy, or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Past performance does not provide any guarantee of future performance.